Bain Sees Software Debt Defaults Spiking

About this episode

Angelo Rufino discusses the potential spike in software default rates due to AI disruption and the upcoming credit cycle.

Software default rates could hit double digits as AI disruption spreads and loans come due, according to Bain Capital. “We’re going to see real stress,” said Angelo Rufino, the firm’s head of special situations in North America and corporate special situations in Europe. “We will see a full credit cycle as the reckoning really comes to resize capital structures to the earnings power of these business models,” he tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in this episode of the Credit Edge podcast. They also discuss investment-grade private credit, data center debt and asset-based finance, including the rise of music-royalty deals. See omnystudio.com/listener for privacy information.

People in this episode

Hosts: James Crombie, David Havens

Guest: Angelo Rufino

Topics covered

• software debt
• AI disruption
• credit cycle
• investment-grade private credit
• data center debt
• asset-based finance
• music-royalty deals

Keywords

• software defaults
• AI disruption
• credit cycle
• Bain Capital
• investment-grade private credit
• data center debt
• asset-based finance
• music-royalty deals

Mentioned in this episode

Organizations: Bain Capital, Bloomberg News

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